Without regard to whether the new fiduciary regulation goes into effect as written and on the intended timeline, we’re seeing one benefit of the regulation: Americans have become more aware of the role of a fiduciary and the value of using one.
The Wall Street Journal ran a great article examining the public “catching on” to the “fiduciary” term. The article noted that:
- The new rule requires financial advisers and brokers to act in the best interests of their clients.
- Since the final rule was approved, Google searches for “fiduciary” have greatly increased.
- Also, since that time, the number of daily clicks on pages devoted to fiduciary-related topics on Investopedia have risen by around 150%.
- Financial advisers, brokers, and planners are facing more questions about fiduciary status from their clients.
The article also acknowledges that the new fiduciary regulation would greatly impact the businesses of those who recommend investments that pay the highest sales commissions and fees, and that those financial professionals are hoping the regulation is wiped off the books.
Although, that extreme result would permit the ongoing practices of those who do not put their clients’ interests first, we’re hopeful that this greater awareness of the fiduciary standard will help individuals to avoid the current pitfalls of using a provider that is not comfortable with fiduciary responsibility.